Macy’s Inc. Chief Executive Terry Lundgren testified Monday that he was “sick” to his stomach when he learned in December 2011 that homemaking maven Martha Stewart had been courted by another department store suitor to sell home products.

Mr. Lundgren is testifying in a high-profile dispute in New York state court in Manhattan between Macy’s and J.C. Penney Co. over Martha Stewart Living Omnimedia Inc. selling products at the rivals.

Macy’s sued Martha Stewart Living and J.C. Penney last year over a deal to create Martha Stewart stores within Penney locations and sell home products designed by her company, saying it breached a long-running exclusive arrangement with Macy’s. The Martha Stewart stores are expected to be unveiled in May.

On the night of Dec. 6, 2011, Mr. Lundgren said that Ms. Stewart called him and. . . . . Read More »

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The Law Blog covers the legal arena’s hot cases, emerging trends and big personalities. It’s brought to you by lead writer Jacob Gershman with contributions from across The Wall Street Journal’s staff. Jacob comes here after more than half a decade covering the bare-knuckle politics of New York State. His inside-the-room reporting left him steeped in legal and regulatory issues that continue to grab headlines.

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